SGD New Issue Alert : CDL 5Y 3%

NEW ISSUE: CITY DEVELOPMENTS SGD 5YR –  Final Guidance 3% (the number) **

ISSUER: City Developments Limited
ISSUE RATINGS:  Unrated
STATUS: Direct, unconditional, unsubordinated and unsecured notes
FORMAT/DOCS: Reg S Only, Bearer / Issuer’s S$5 billion Multicurrency Medium Term Note Programme
TENOR:  5 Years
ISSUE SIZE:  TBD
SETTLEMENT DATE:  2-April-2015
FINAL PRICE GUIDANCE: 3.00% (the number)

CDL is back with their take it or leave it issues just like all of theirs in the past and it is an arms length transaction and you cannot mess with them which means they usually do not get away with Capitaland’s bond sizes.

This one could be different with 5 year swaps at 2.155% today, the premium they are paying is a thin 0.845% compared to their last 5 year issue in 2013 at premium of 1.5% and last year’s 3.78% year issue in October that paid up 2.18%.

The good thing is that they do not need the money so lend them only if you really want to because wasn’t 3.008% what HDB paid for their 6 year issue just a year ago ? (when rates were much lower too ?)